Slide 1: Q2 2023 results
Q2 2023 results 14 July 2023 − Henri de Sauvage-Nolting, President/CEO − Frans Rydén, CFO − Nathalie Redmo, IR
Slide 2: Agenda
Agenda 1. Quarterly update 2. Financials 3. Strategic update 4. Q&A 2
Slide 3: Key messages
Key messages High organic growth and continued profit improvement • Continued strong growth in Branded; favourable mix from higher-margin products • 9th quarter of growth in Pick & mix; important initiatives within quick commerce • Higher adjusted operating profit reflects that last year the pricing
Slide 4: Financials
Financials 4 | Cletta
Slide 5: Net sales
Net sales Strong double-digit growth driven by pricing to offset cost inflation Second quarter 6 months +22.9% +25.4% + 6.2% 1 998 + 5.4% 3 971 + 16.7% + 20.0% 1 626 3 166 Branded packaged + 14.8% Branded packaged + 17.6% Pick & mix + 22.4% Pick & mix + 27.3% Q2 ’22 Organic growth FX Q2 ’23 2022 Org
Slide 6: Sales development
Sales development 20.5% Branded, % of Q2 ‘23 sales 14.8% 9.3% 10.2% 7.3% 8.2% 6.1% 3.6% 2.5% 4.0% 2.5% 1.7% -2.5% -3.6% -6.3% 73% Q4’19 Q1’20 Q2’20 Q3’20 Q4’20 Q1’21 Q2’21 Q3’21 Q4’21 Q1’22 Q2’22 Q3’22 Q4’22 Q1’23 Q2’23 Pick & mix, % of Q2 ’23 sales 79.6% 32.4% 32.7% 21.6% 23.8% 24.4% 22.4% 27% 15.7
Slide 7: Operating profit, adjusted
Operating profit, adjusted Increased profit driven by pricing to offset higher input cost • Strong pricing execution to offset Operating profit, adjusted cost inflation. The improved profit 6 months Second quarter reflects that last year the pricing only partially offset the cost inflation. 9.6% 9.8
Slide 8: Operating profit, adjusted, by segment
Operating profit, adjusted, by segment Increased Branded profit and maintained profitability; Pick & mix profitable for 9 th consecutive quarter Second quarter 6 months 12.7% 12.7% 12.8% 12.7% 186 370 154 32 303 67 Branded packaged Q2 ’22 var. Q2 ’23 2022 var. 2023 1.9% 0.9% 2.1% 2.0% 21 Pick & mix
Slide 9: SG&A
SG&A Cost driven by annual salary increases across markets and currency translation effect Second quarter 6 months 25.8% 22.9% 26.1% 22.6% -38 -71 -2 0 -420 -18 -827 -30 -18 -41 -458 -898 Q2 ’22 Items FX Net SG&A Q2 ’23 2022 Items FX Net SG&A 2023 affecting affecting comparability comparability 9
Slide 10: Cash flow
Cash flow Higher free cash flow driven by improved operating profit and stronger working capital 226 Q2 ‘23 • Increased working capital in line with -143 -81 2 seasonal trend where cash is generated in second half of the year. -314 • Improved working capital vs LY despite -312 negative effect of hig
Slide 11: Financial position
Financial position Continued strong financial position • Leverage at 2.3x remains below long-term target of 2.5x and lower than Q2 2022 • Net debt increase driven by unfavourable unrealised revaluation impact • Unutilised access to cash of SEK 3.6bn 4.5 5 000 Access to cash 4 500 3.6 Covenant 4.0 0.
Slide 12: Strategic update
BLANDAT AktalFrukt® fi \ BAR'6 FRUKT)
Slide 13: Portfolio rationalisation – Branded
Portfolio rationalisation – Branded Packed SKU’s and Displays 3500 • Number of active items reduced by 17.5% in 2023 vs 2021 baseline 3000 • Aiming to reduce by another 7.5% in 2024 • Further opportunities through the new greenfield facility 2500 2000 Key areas to drive reduction: 1500 • ABCD classi
Slide 14: Portfolio rationalisation – Pick & mix
Portfolio rationalisation – Pick & mix Active items 1200 • Number of active items in Pick & mix portfolio reduced by >20% between 2019-2022 1000 • Aiming to reduce with additional 20% in 2023 800 • Assortment decisions centrally organised • Buying centralised – upside when raw material cost declines
Slide 15: Winning in emerging online channels
Winning in emerging online channels Reaching consumers through quick commerce Quick commerce (order and delivery within 30-45 min) expanded rapidly during the pandemic and found a permanent place in the online landscape. Confectionery is particularly interesting for the “here and now” moments. Examp
Slide 16: CandyKing recognised in top-tier media
CandyKing recognised in top-tier media CandyKing brand building • Stepping up brand building efforts through own and earned media • Across market activation with a summer campaign with the theme “Buy and Win” 16
Slide 17: Greenfield project proceeding
Greenfield project proceeding • Last union negotiations in Belgium finalised • City council published intent to sell land to Cloetta • Open dialogue with all stakeholders • Electricity supply ordered • Tendering process of the factory building initiated • Engineering design on equipment in progress
Slide 18: Q&A
Q&A 18
Slide 19: Thank you!
Thank you!
Slide 20: Appendix
Appendix 20
Slide 21: Greenfield facility – Pro forma profit and loss Q2
Greenfield facility – Pro forma profit and loss Q2 Impact financial reporting Q2 2023, Greenfield Q2 pro forma Other items Q2 2023, reported excl. affecting adjusted greenfield comp. Net sales 1,998 1,998 1,998 Cost of goods sold -1,358 -4 -1,354 -1,354 Gross profit 640 -4 644 644 Selling expenses -
Slide 22: Greenfield facility – Pro forma profit and loss YTD
Greenfield facility – Pro forma profit and loss YTD Impact financial reporting YTD Q2 2023, Greenfield YTD Q2 pro Other items YTD Q2 2023, reported forma excl. affecting adjusted greenfield comp. Net sales 3,971 3,971 3,971 Cost of goods sold -2,713 -24 -2,689 -2,689 Gross profit 1,258 -24 1,282 1,2
Slide 23: Disclaimer
Disclaimer • This presentation has been prepared by Cloetta AB (publ) (the “Company”) solely for use at this presentation and is furnished to you solely for your information and may not be reproduced or redistributed, in whole or in part, to any other person. The presentation does not constitute an